Dow falls but Russell 2000 holds on
The Russell 2000 is in positive territory while the Dow has slipped into the red as the price of oil takes a tumble. At 14:39 p.m. ET the Russell 2000 had gained 3.76 points, or 0.45%, to 833.69. The Dow Jones Industrial Average was down 28.93 points, or 0.21%, to 13,478.35.
Shares of TAT Technologies Ltd. (Nasdaq: TATTF) are rising after news the manufacturer of heat transfer equipment reported a doubling of its quarterly profit. The net income for the quarter ended March 31 was $2.59 million, an increase of 106% compared with a net income of $1.25 million in the first quarter of 2006, the Israeli company said before the start of trading. Analyst estimates were unavailable. The stock has gained $3.95, or 24%, to $20.57.
Vimicro International Corp. (Nasdaq: VIMC) has reaffirmed its partnership with Microsoft China, the Chinese semiconductor company said on Monday, May 28. Microsoft and Vimicro will increase their efforts in the field of digital media and expand the scope of their work to include the mobile multimedia sector. Shares are up $0.56, or 8%, to $7.04.
Shares of Bioenvision, Inc. (Nasdaq: BIVN) have added $0.31, or 6%, to $5.56, following news the New York-based biopharmaceutical company is being purchased by Genzyme Corp. (Nasdaq: GENZ) for $345 million. The two companies have agreed to an all cash transaction valued at $5.60 per outstanding common share, according to a joint announcement before the opening bell. The buyout will give Genzyme exclusive rights to the leukemia drug clofarabine, which the two companies co-developed. The transaction is expected to be close in July.
In economic news, the price of oil has fallen about two dollars to just above $63 a barrel following news that unions in Nigeria called off a strike that had threatened to halt oil shipments from Africa’s largest exporter.
Additionally, refineries in three U.S. states have resumed operations, raising gasoline production following the official start of the summer driving season.
